Tuesday, July 24, 2012

Netflix, Inc.(NASDAQ:NFLX) Slumps 13% On Poor Subscribers Additions

Netflix, Inc.(NASDAQ:NFLX) shares took another hit after hours on Tuesday after the company posted lower than estimated subscribers growth,

However, the company reported higher than estimated third quarter earnings and said that it earmed 11 cents a share on revenue of $889 million, topping analysts target of a profit of 5 cents a share on revenue of $889 million.

Get Complete Analysis on Earnings of NFLX for Free Here

At least as important, though, are the video service’s subscriber numbers. Here investors were looking for 24.3 million domestic streaming subscribers, 9.1 million DVD subs, and 3.7 million subscribers from Canada, Latin America and the UK, and Netflix didn’t quite get there: 23.9 million domestic, 9.2 million DVD, and 3.6 million international.

For the current quarter, the company sees revenue of $890 million to $911 million, and EPS in a range of negative 10 cents to a profit of 14 cents. That is below the consensus projections of $910 million and a 12-cent profit.

Shares of NFLX slumped 13% to $69.46 in after-hours.

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